Baucus has a responsibility

Without so much as a friendly "good luck to you" from ranking Democrat Max Baucus, the Senate Finance Committee has endeavored to craft a Social Security reform bill that will keep America's invaluable retirement program solvent and strong for future generations.

The committee's work follows on the heels of Pres, George W. Bush's "60 Cities in 60 Days" tour to sell the idea of reform to the American people.

I had the privilege of listening to Pres. Bush address this issue in Great Falls last winter and he made an excellent case for the need for reforming Social Security now.

Though the Social Security system itself is complex, the problem facing the program is remarkably straightforward.

Social Security is a pay-as-you-go government program, which means benefits for current retirees are financed through payroll taxes paid by current workers. This formulation worked well in the past when we had many times more workers than retirees.

Consider the following: In 1950, America had 16 workers paying into the system to support one retiree.

This ratio allowed Congress to keep taxes low and still provide generous benefits.

Unfortunately, birthrates have dropped. And now that the baby boom generation is preparing to retire, the system is on the verge of serious financial problems. By the time today's younger workers retire, we will have only two workers for every retiree.

The economic consequences of this looming crisis are staggering.

In 2008, cash flow will begin to dry up. In 2017, the system will begin to run deficits. Those deficits will pile up until the year 2041, when Social Security will be unable to meet its promise to retirees. We are talking about an $11.1 trillion—with a "T"—of unfunded liability.

Sen. Joe Lieberman (D-Conn.) estimates that every year Congress delays in fixing the program costs taxpayers and beneficiaries $600 billion.

What does that mean for you and me, or more importantly, our children and grandchildren?

It means Social Security will not be a meaningful or reliable source of financial security in their golden years. The system, sadly, will diminish in relevance to ordinary Americans until, ultimately, it wilts and dies.

A young worker in today's economy can expect to see her promised benefits slashed by more than a quarter. This is a potentially devastating cataclysm that would leave stranded whole generations of Americans.

Our own Sen. Baucus, however, believes the system is fine. Baucus is among the crisis deniers in the U.S. Senate who refuse even to entertain the idea of reform and have failed to put forward any proposals or thoughts on how to buttress this invaluable piece of American life.

"The sky is not falling as some would have you believe," Baucus wrote dishonestly in a letter to college students in late March. "Experts say Social Security will be just fine for another 50 years."

Forget for a moment that "experts" make no such irresponsible claim; Sen. Baucus is shirking his responsibility as a state and national leader by pretending there is no problem here.

Regardless, the Senate Finance Committee will construct a bill to reform and repair Social Security and that bill will receive an up-or-down committee vote. And Sen. Baucus will need to decide which master he intends to serve; his partisan and ideological masters, or the future retirees of the state of Montana. His rhetoric thus far has been discouraging to say the least.

If Sen. Baucus votes against reform, he will have by default endorsed the worst imaginable Social Security plan: the current system, which, as we have seen, is unsustainable.

By voting no, as his comments betray he probably will, Baucus will condemn tomorrow's retirees to a grim future with no reliable means of support from Washington.

As Presi. George W. Bush stated Tuesday night, "If leaders of the other party have innovative ideas, let's hear them. But if they have no ideas or policies except obstruction, they should step aside and let others lead."

The public debate over Social Security has been shrouded in hyperbole and dishonesty. But in the end, only the facts remain standing. And the facts foretell of a grisly future for Social Security if the system is not repaired.

As the ranking member of the Senate Finance Committee, Sen. Baucus is in a position to do the right thing. Will he?

Robert Keenan is the Minority Leader of the Montana State Senate.